{
  "id": 632113,
  "title": "Rakuten’s shares plunge after mobile losses fuel investor fears",
  "url": "https://urgent.news/2026/08/12/rakutens-shares-plunge-after-mobile-losses-fuel-investor-fears",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-12T04:11:00.000Z",
  "source": {
    "name": "Japan Times",
    "slug": "japan-times",
    "url": "https://www.japantimes.co.jp/business/2026/08/12/markets/rakuten-shares-plunge/"
  },
  "original_language": "en",
  "account": "Rakuten Group's shares plummeted to their lowest level in over a year after the e-commerce giant failed to reduce persistent losses at its mobile division. The Tokyo-based company's stock plummeted as much as 12% on Wednesday, marking the steepest intraday decline since April of the previous year. While one-time tax credits and a surge in fintech segment profits enabled Rakuten to report its first net income in six years, investors were primarily concerned with the stagnating losses at the company's mobile operations, which remained largely unchanged from a year ago. Hiroshi Mikitani, the billionaire founder, spearheaded Rakuten's entry into Japan's crowded wireless market six years ago. However, the company has been grappling with persistent losses and mounting debt since then. Even before Wednesday's drop, Rakuten's shares had lagged behind the broader market this year, slipping by 14%. Despite a 59% profit gain in Rakuten's fintech segment, which encompasses banking, brokerage, and credit card services, as well as a 57% profit growth in the core internet services segment, including the company's travel and shopping platforms, these gains did not account for the mobile ecosystem. On Monday, the company disclosed that its operating profit had more than doubled in the June quarter, yet it still fell short of analysts' expectations. Japan's markets were closed for a holiday on Tuesday. Morgan Stanley MUFG Securities analysts, including Tetsuro Tsusaka, commented in a note that while overall profit improvement remains on track, mobile earnings growth was slightly weak.",
  "summary": "The Tokyo-based company's stock fell as much as 12% on Wednesday, their biggest intraday drop since April last year.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}